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ITC is not admissible on the goods and services received and used in the construction of warehouse used for letting out on rent as per the section 17(5)(d) of CGST Act.

Input Tax Credit — Whether ITC of GST paid on goods purchased for the purpose of construction & maintenance of Warehouse such as Vitrified Tiles, Marble, Granite, ACP sheet, Steel Plates, TMT Tor(saria), Bricks, Cement, Paint and other construction material can be claimed in full?

Whether ITC of GST paid on work contract service received from registered & unregistered Contractor for construction & maintenance contract of building can be claimed in full?

Whether ITC of GST paid on goods purchased & works contract service received during the FY 2017-18 for the purpose of construction & maintenance of Warehouse can be claimed in full?

The Section 17(5) of CGST Act is an exclusion clause in spite of the goods or services used in the course or for furtherance of his business as the Section 16 of CGST ACT, it is clearly mentioned that the entitlement of ITC is subject to the condition and restriction. We find that the view of applicant that they are entitled for ITC in view of Section 16 is incorrect as per law. Further the applicant stated that if the ITC is not allowed as per the Section 17(5) (d) then it is unwarranted, unreasonable, arbitrary, unconstitutional, illegal, violation of fundamental right, double taxation is baseless as the Section 17(5)(d) of CGST Act is very clear and there is no scope of interpretation but in spite of clearcut law, the Applicant has wrongly interpreted the Section to avail the benefit of inadmissible ITC.

In view of above, it is concluded that the ITC is not admissible on the goods and services received and used in the construction of warehouse used for letting out on rent as per the Section 17(5)(d) of CGST Act, 2017. — Unity Traders, In Re… [2020] 21 TAXLOK.COM 089 (AAR-Madhya Pradesh)

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